Equity Release Criteria You Need to Know

Discover the Essential Equity Release Criteria
Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui
Are You Considering Equity Release, but Wonder if You Qualify? Here’s a Detailed Breakdown of the Equity Release Lending Criteria You Must Know…
TABLE OF CONTENTS

Equity Release Criteria


Without this crucial knowledge on equity release criteria to look out for in 2022, you may find yourself tied into an equity release plan that you regret!

While equity release solutions are safer than ever, unregulated lenders will only assist you take a step back rather than unlocking the key to your retirement aspirations.

Fortunately, we’re here to assist you in taking the first step toward equity release.

In this article, we’ll discuss:

  • How much equity you can release from your property?
  • What are the requirements for releasing equity? 
  • How to see if you qualify for equity release?

Our team of leading experts has searched the market for the most accurate and up-to-date equity release information in order to provide you with free advice.

We’ve reviewed everything you need to know and here’s your ultimate breakdown. 

Take a look at what we found!

Before You Start Reading….

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What Are the Main Equity Release Criteria?

The main equity release qualifying criteria are that the youngest homeowner is 55 or older,

Your property is situated in the UK or neighbouring islands, and that you own your house outright.

The following additional criteria questions should also be taken into consideration when applying for equity release.

What Are the Age Limits for Equity Release?

The minimum eligible age to apply for equity release is 55.

For joint equity release mortgages, this applies to the youngest applicant. 

Ownership & Use of the Property

If you opt for a lifetime mortgage on your property, you have the right to stay in your home until you move into long-term care1 or pass away.

However

With a home reversion plan, you can sell all or part of your home while you continue to live there rent-free.

Any Remaining Mortgage on the Property

When taking out equity release, you must clear any existing mortgages, either from your savings or with the equity release funds received.

After which, you can spend the money however you wish.

Where’s the Property Located?

The location of your property is something lenders consider.

If you live in mainland England, Wales or Scotland you have access to all the equity release plans available. 

Some lenders exclude islands. For example, you can get Equity Release in the Isle of White, but you can’t in the Isle of Man.

How Much Is the Property Worth?

The minimum property value for equity release plans is £70,000.

If your property is worth more than £1 million, additional underwriting checks1 may be required.

The Condition of the Property

The condition of your property will also be taken into consideration before advisors will agree to lend you money.

Providers will look closely at your house’s state and saleability, so your house must be in reasonable shape when you apply and then maintained to an acceptable standard.

How Much Equity Do You Want to Release?

The amount of equity you want to release will decide if equity release is the right option for you.

Keep in mind that the maximum percentage equity you can release from your home is usually up to 60% of the property value.

Will Your Health Affect Your Eligibility to Get Equity Release?

No, your health won’t affect your eligibility for equity release. 

In fact, it can be used as a positive. Health conditions may increase the maximum LTV2 available and cause minimal interest rates if you opt for an enhanced lifetime mortgage.

FAQ’s

How Do I Discover if I Qualify for Equity Release?

Is There a Minimum & Maximum Loan Amount?

Can I Be Refused Equity Release?

In Conclusion

Whatever your reasons for wanting to release equity, don’t do anything without first conducting a thorough study. 

It’s critical that you’re satisfied with the supplier you’re working with since it will affect how much equity you may discharge.

If you’re thinking about equity release and are confident you fulfill the eligibility requirements, talk to an equity release professional to find out how much equity you may get out of your house.

How Much Can You Release?

Use the FREE Calculator Below 👇

 

Equity Release Calculator

Value of Your Home?

50000

Drag me

🔒 100% Secure & Fast

It’s VERY FAST, takes just 8 seconds

Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.